Forward Bank

If you own vacant land, you may assume it doesn’t need insurance, but unfortunately, that’s not true.

Vacant land can be a breeding ground for liability lawsuits. You’re responsible for what happens on your property, meaning any accidents to others could cause you big headaches. Although you’re not legally required to carry vacant land insurance, doing so will protect your other assets. If someone is hurt on your property, you could be sued. Vacant land insurance will help pay for injured parties’ medical expenses, legal expenses, and certain types of property damage.

Why do I need vacant land insurance?

If you suspect trespassers may be using your land, you probably need it; if you permit people to use your land, and they pay you for the privilege, you’re liable for anything that may happen to them. Even if they don’t pay, you’re liable, but not to the same extent.

 What can happen?

• Hunters and fishermen pose heightened risks of injuries or fatal wounds. Even when it’s something that could be considered their fault, such as falling into a creek.
• ATV accidents: There were 1,701 ATV rider deaths during a five-year study, conducted by The Insurance Institute for Highway Safety in 2013. One could have been on your land.
• Hikers unfamiliar with the terrain can be injured, with resulting liability claims.

Protect your assets

Insuring land isn’t difficult, and it’s reasonably priced, especially if it’s an extension of homeowners or farmers liability policies. However, you may also need umbrella insurance, which will add liability coverage from $1 million to $5 million. If a lawsuit maxes out a homeowners or farmers policy liability limits, this coverage kicks in.

To decide if you need vacant land insurance, consider your land’s current use and assess possible risks. Also, know your state’s landowner laws. An agent at Forward Insurance will help you determine if and what coverage you may need.